Narrow Regional Economic Disparities In China Financial Policy Research

Territorial gap is certain to exist both in the world and in a country. If we can keep the territorial gap within a reasonable range, the gap will not take any negative effect. On the contrary, if the gap is out of the range, the negative effect will be dominating. Therefore, the problem on how to keep the territorial gap within a reasonable range has long been the focus in the field of territorial economy. Undoubtedly, Finance policies can play an important and unique role in this respect. The paper starts from the condition of our country's territorial gap and then researches on how to shorten the gap from the prospect of finance.The paper is divided into four parts:Part 1, The condition and reason of our country's territorial gap. Now the territorial gap in our country is already out of the reasonable range and part of the reason is the finance policies.Part 2, International experiences on territorial development. In this part I introduce the process of U.S, India and Braze on how to develop their poor districts and then concludes their experiences further.Part 3, Analysis on finance policies to shorten territorial gap. Transfer policy and tax policy are the two main effective tools. As to transfer policy, firstly I discuss on its three forms and their suitable condition respectively. Secondly I put forward that the tridimensional transfer system should be established. As to tax policy, after having concluded that the present tax policy is not beneficial to the poor districts I make some proposals to improve it.Part 4, Specific finance policies on how to shorten the gap. In this part, I suggest that finance policies on supporting science, education, agriculture, establishment and stock company should be carried out to develop the poor districts and then shorten the territorial gap.